Your property has a mortgage and you want to sell it? Don’t worry. Several options are available to you:
Repay the mortgage with the proceeds of the sale:
This is the most common situation. The buyer pays the purchase price to the notary, who then uses the funds to repay the mortgage to your bank. However, be aware that the sale may take place before your loan matures. In this case, early repayment penalties may apply. It’s important to contact your bank before the transaction to inform them and understand the possible consequences of your decision to sell.
Transfer the mortgage to the buyer:
In some cases, you can transfer your mortgage to the buyer if your bank agrees to this option. This can be advantageous if the buyer qualifies under the same loan conditions you originally obtained, as it could help you avoid early repayment penalties. However, not all banks allow this, so you should check with your bank in advance.
Transfer the mortgage to a new property:
Under certain conditions, you may also be able to transfer the mortgage to another property you own in Switzerland. For example, the loan amount must not exceed 80% of the value of the new property, and your income should not have significantly decreased since the loan was initially taken out. Again, contact your bank to explore the options available to you.
Excerpt from our guide: Selling Your Home in 42 Questions